Drake Tax - Child Tax Credit - Fewer Than 7 Months in Home
Article #: 14573
Last Updated: October 21, 2024
Generally, for a child to be considered a qualifying child for CTC purposes, they must have lived in the home for more than half of the year. By default, the CTC will be automatically disallowed for a child when fewer than 7 Months in home have been entered on screen 2 (Dependents). There are some exceptions to this residency test, which may allow a child who lived in the home for less than 7 months to be a qualifying child for CTC purposes. See the Form 8332 instructions for details.
If you determine that the child does qualify for CTC when they lived in the home for less than 7 months, then you will need to make an additional selection on that dependent screen.
Choose the option Taxpayer has Form 8332 or a substantially similar statement from custodial parent and qualifies for the Child Tax Credit located on the Dependents screen > Due Diligence tab.
Drake Tax 2020 - Drake Tax 2022
In Drake Tax 2020 -Drake Tax 2022, choose C in the drop down to indicate that the child is Eligible for Child Tax Credit from this drop list.
Caution If the Child Tax Credit is calculated when the child is not eligible, mark the check box Not Eligible for Child Tax Credit OR Other Dependents Credit on the Due Diligence tab of each applicable dependent screen in Drake Tax 2023. This selection is available in the drop list Eligible for Child Tax OR Other Dependent Credit on screen 2 in Drake Tax 2020-2022 instead.